Dow Closes Lower, Giving Up 375-Point Pop After Big Fed Rate Cut
Stocks closed lower Wednesday in a volatile session as the Federal Reserve lowered interest rates in a half-point percentage move. The outsized rate cut was cheered initially by traders, though it did raise concerns the Fed was trying to get ahead of potential economic weakness.
The Dow Jones Industrial Average slid 103 points, or 0.25%. It was up as much as 375.79 points just after the Fed decision. The S&P 500 lost 0.3%. The Nasdaq Composite also dropped 0.3%. The S&P 500 and the Dow both touched records initially before falling back.
The Fed lowered its overnight lending rate to a range of 4.75%-5% from 5.25%-5.5%, the first rate cut in four years as inflation levels ease from the levels seen two years ago.
"The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance," the central bank said in a statement.
Source : CNBC
